Hong Kong's three major indices fell in unison by midday on August 24. The Hang Seng Index dropped 2.09% or 544.23 points to 25,465.23; the Hang Seng Tech Index tumbled 3.84% to 4,582.97; and the HSCEI declined 2.01% to 8,460.39. Half-day turnover reached approximately HK$167.9 billion.

Alibaba's HK$80 billion share placement triggered a broad tech sell-off. Alibaba slumped nearly 10%, briefly dipping below the placement price. Tencent, Meituan and Xiaomi fell between 3% and 4%. AI and semiconductor names followed the downtrend, with Zhipu dropping over 8% and SMIC losing more than 6%. On the flip side, Sinopec rallied over 4% after reporting a 12% rise in interim profit, KE Holdings gained nearly 4% following a target price upgrade by CLSA, and CMOC edged higher.

Alibaba's HK$80bn Share Placement Sends Tech Stocks Tumbling

At the midday break, Alibaba (09988.HK) slumped 9.76% to HK$111, falling below the HK$112.7 placement price, with half-day turnover of nearly HK$27.8 billion — the highest on the market. Tencent (00700.HK) fell 3.76% to HK$439.8; Meituan (03690.HK) dropped 3% to HK$82.45; Xiaomi (01810.HK) declined 4.07% to HK$27.84; and Kuaishou (01024.HK) shed 3.6% to HK$33.18.

Alibaba announced the placement of 710 million new shares at HK$112.7 apiece, raising net proceeds of approximately HK$79.7 billion — the largest-ever new share placement on the Hong Kong Stock Exchange. Although the order book was nearly three times oversubscribed with total orders reaching US$28 billion, the market fretted over near-term equity dilution. Bank of America Securities maintained a Buy rating on Alibaba with a Hong Kong target price of HK$168, noting the placement would strengthen the balance sheet and diversify funding while the cloud business growth outlook remains bright. J.P. Morgan raised its Hong Kong target price to HK$205 and recommended accumulating shares ahead of the September-quarter earnings release.

Sinopec Bucks the Trend, Up Over 4% on 12% Interim Profit Growth

At midday, Sinopec (00386.HK) rose 4.43% to HK$4.6 on turnover of HK$1.17 billion. The company reported interim net profit of RMB 26.567 billion under IFRS, up 11.9% year-on-year, with earnings per share of RMB 0.22. Revenue reached RMB 1.44 trillion, up 2%. Looking ahead, Sinopec expects the economy to remain stable in the second half, but flagged weak chemical product demand, the impact of alternative fuels on refined oil products, and ongoing uncertainty in international crude oil prices.

Livzon Pharma Crashes Over 14% After Earnings

At the midday break, Livzon Pharmaceutical (01513.HK) plunged 14.45% to HK$21.32. The company reported net profit of RMB 932 million for the six months ended June 30, 2026, down 27.2% year-on-year, while revenue fell 20.28% to RMB 5 billion. No interim dividend was declared.

AI and Semiconductor Stocks Broadly Weaker; KE Holdings Rises Nearly 4%

AI and semiconductor names broadly tracked the market lower. Zhipu (02513.HK) fell 8.41% to HK$1,034; Tianshu Zhixin (09903.HK) dropped 7.83%; SMIC (00981.HK) declined 6.62% to HK$67.7; and Hua Hong Semiconductor (01347.HK) lost 5.23% to HK$108.8. Meanwhile, KE Holdings (02423.HK) bucked the trend, rising 3.88% to HK$47.14, after CLSA raised its Hong Kong target price to HK$62, citing expectations that second-quarter results would beat forecasts on improved efficiency and market share gains. Gold-related resource stocks were mixed: CMOC (03993.HK) edged up 1.29%, while Zijin Mining (02899.HK) slipped 0.41%.